WES MOORE, Governor Ch. 549
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Chapter 549
(Senate Bill 650)
AN ACT concerning
Public Safety – State Disaster Recovery Fund
FOR the purpose of establishing the State Disaster Recovery Fund as a special, nonlapsing
fund to provide disaster related assistance under certain circumstances; requiring
interest earnings of the Fund to be credited to the Fund; requiring the Maryland
Department of Emergency Management to administer the State Disaster Recovery
Fund; authorizing a portion of the State Disaster Recovery Fund to be transferred
by the Governor to the Federal Government Shutdown Employee Assistance Loan
Fund in the event of a government shutdown; repealing the Catastrophic Event
Account; requiring the Governor to transfer the balance of the Catastrophic Event
Account to the State Disaster Recovery Fund making alterations to the Catastrophic
Event Account authorized uses to allow funds to be used by a unit of local government;
and generally relating to the State Disaster Recovery Fund and Catastrophic Event
Account.
BY adding to
Article – Public Safety
Section 14–110.5
Annotated Code of Maryland
(2022 Replacement Volume)
BY repealing
Article – State Finance and Procurement
Section 7–324
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(i)
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)170. and 171. and 7–324
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY adding to
Article – State Finance and Procurement Ch. 549 2023 LAWS OF MARYLAND
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Section 6–226(a)(2)(ii)172.
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Safety
14–110.5.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “FUND” MEANS THE STATE DISASTER RECOVERY FUND.
(3) “LOCAL DISASTER DECLARATION” MEANS A FORMAL REQUE ST
FOR STATE DISASTER RELIEF AND RECOVERY ASSISTA NCE MADE AS A RESULT OF
AN EMERGENCY BY THE SENIOR ELECTED OFFIC IAL THROUGH THE LOCA L
ORGANIZATION FOR EME RGENCY MANAGEMENT .
(B) THERE IS A STATE DISASTER RECOVERY FUND.
(C) THE PURPOSE OF THE FUND IS TO PROVIDE :
(1) DISASTER RECOVERY AS SISTANCE TO INDIVIDUALS AND FAMILI ES
WHEN A UNIT OF LOCAL GOVERNMENT HAS SUBMI TTED A REQUEST FOR A DISASTER
DECLARATION BUT A FE DERAL DISASTER DECLA RATION IS NOT RECEIV ED;
(2) DISASTER RECOVERY AS SISTANCE TO UNITS OF LOCAL
GOVERNMENT OF THE STATE FOR THE REPAIR , RESTORATION, RECONSTRUCTION ,
OR REPLACEMENT OF A PUBLIC FACILITY DAMA GED OR DESTROYED WHE N A
FEDERAL DISASTER DEC LARATION IS NOT RECE IVED;
(3) LOW–INTEREST OR NO –INTEREST LOANS TO BU SINESSES AND
NONPROFITS FOR DISAS TER RECOVERY ASSISTA NCE WHEN A FEDERAL D ISASTER
DECLARATION IS NOT R ECEIVED;
(4) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF
INDIVIDUALS AND FAMI LIES FOLLOWING A FED ERAL DISASTER DECLAR ATION;
(5) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF
INDIVIDUALS AND FAMI LIES WHO HAVE BEEN DENIED FEDERAL ASSIS TANCE BUT
OTHERWISE MEET CRITE RIA ESTABLISHED FOR THE FUND; AND WES MOORE, Governor Ch. 549
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(6) MATCHING FUNDS FOR A SSISTANCE TO INDIVID UALS AND STATE
AND LOCAL GOVERNMENT AL UNITS AFTER A FED ERAL DISASTER DECLAR ATION.
(D) THE FUND:
(1) IS A SPECIAL, NONLAPSING FUND THAT IS NO T SUBJECT TO §
7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE;
(2) SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF
PROVIDING DISASTER R ECOVERY ASSISTANCE I N ACCORDANCE WITH TH E
PROVISIONS OF THIS S ECTION;
(3) EXCEPT AS PROVIDED IN SUBSECTIO N (E) OF THIS SECTION, MAY
BE USED ONLY IF:
(I) THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY;
OR
(II) A LOCAL ORGANIZATION FOR EMERGENCY MANAGE MENT
REQUESTS ASSISTANCE FROM THE FUND;
(4) IS NOT INTENDED TO D UPLICATE OR REPLACE FEDERAL
DISASTER ASSISTANCE ; AND
(5) MAY NOT BE USED FOR ANY OTHER PURPOSE OT HER THAN THOSE
DESCRIBED IN THIS SE CTION.
(E) A PORTION OF THE FUND MAY BE USED TO A DMINISTER THE FUND,
INCLUDING PROVIDING DISASTER CASE MANAGE MENT RESOURCES .
(F) (1) BEGINNING IN FISCAL Y EAR 2025, THE THE GOVERNOR SHALL
MAY INCLUDE IN THE ANNUAL BUDGET BILL A SUFFICIENT AN APPROPRIATION TO
BRING THE MINIMUM BALANCE OF THE FUND TO AT LEAST $20,000,000 AT THE
START OF EACH FISCAL YEAR, WITH FUNDS CONSISTIN G.
(2) THE FUND SHALL CONSIST OF:
(1) (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE
FUND;
(2) (II) REPAYMENTS OF PRINCI PAL AND INTEREST FRO M LOANS
MADE FROM THE FUND;
Ch. 549 2023 LAWS OF MARYLAND
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(3) (III) REIMBURSEMENTS FROM THE FEDERAL GOVERNME NT OR
OTHER LEGAL ENTITIES FOR DISASTER RECOVER Y ASSISTANCE EXPENDI TURES
MADE FROM THE FUND; AND
(4) (IV) INTEREST EARNINGS OF THE FUND; AND
(V) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED
FOR THE BENEFIT OF T HE FUND.
(G) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN
THE SAME MANNER THAT OTHER STATE MONEY MAY BE IN VESTED.
(G) (1) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE
FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED.
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
CREDITED TO THE FUND.
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY ,
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(H) ANY FUNDS EXPENDED FR OM THE FUND ARE SUPPLEMENTAL TO AND
ARE NOT INTENDED TO TAKE THE PLACE OF FU NDING THAT OTHERWISE WOULD BE
APPROPRIATED TO ELIG IBLE RECIPIENTS FROM THE FUND FOR ANY OTHER
PURPOSE.
(I) THE DEPARTMENT SHALL :
(1) ADMINISTER THE FUND;
(2) ESTABLISH ELIGIBILIT Y CRITERIA, POLICIES, AND PROCEDURES
FOR THE ADMINISTRATI ON OF THE FUND, WHILE CONSIDERING EX ISTING STATE
DISASTER RECOVERY PR OGRAMS AND FEDERAL D ISASTER RELIEF AND R ECOVERY
REQUIREMENTS ; AND
(3) CONSULT WITH APPROPR IATE STATE AGENCIES AND LO CAL
ORGANIZATIONS FOR EM ERGENCY MANAGEMENT I N THE DEVELOPMENT OF
ELIGIBILITY CRITERIA , POLICIES, AND PROCEDURES FOR A DMINISTRATION OF THE
FUND.
(J) THE DEPARTMENT MAY ESTABL ISH:
(1) REGULATIONS RELATED TO THE ADMINISTRATIO N OF THE FUND;
WES MOORE, Governor Ch. 549
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(2) ACCOUNTS AND SUB –ACCOUNTS WITHIN THE FUND TO
EFFECTUATE THE PURPO SES OF THIS SECTION ; AND
(3) FORMAL ADVISORY BODI ES TO ADVISE ON THE ADMINISTRATION
OF THE FUND.
(K) (1) ON OR BEFORE DECEMBER 31, 2023, AND ON OR BEFORE EAC H
DECEMBER 31 THEREAFTER , THE SECRETARY SHALL REPOR T TO THE GOVERNOR
AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE
GENERAL ASSEMBLY ON THE USE O F THE FUND FOR THE PREVIOUS FISCAL YEAR.
(2) THE REPORT SHALL INCL UDE:
(I) THE NUMBER OF STATE OF EMERGENCY DECLARATION S BY
THE GOVERNOR;
(II) THE NUMBER OF LOCAL STATE OF EMERGENCY
DECLARATIONS AND LOC AL DISASTER DECLARAT IONS SUBMITTED TO TH E
SECRETARY AND THE REA SON FOR EACH DECLARA TION;
(III) A SUMMARY OF THE DAM AGE ASSESSMENT DATA RELATED
TO EACH DECLARATION , AND THE DISPOSITION OF EACH REQUEST FOR THE
PREVIOUS FISCAL YEAR ;
(IV) THE AMOUNT OF FUNDIN G DISTRIBUTED TO EAC H ELIGIBLE
ENTITY BY THE FUND FOR THE PREVIOUS FISCAL YEAR;
(V) THE FUND BALANCE AT THE E ND OF THE PREVIOU S FISCAL
YEAR;
(VI) ANY FEDERAL DISASTER DECLARATIONS REQUEST ED AND
ASSOCIATED DAMAGE AS SESSMENT DATA FOR TH E PREVIOUS FISCAL YE AR;
(VII) A SUMMARY OF ANY FED ERAL DISASTER ASSIST ANCE
RECEIVED DURING THE PREVIOUS FISCAL YEAR ;
(VIII) A SUMMARY OF ANY REG ULATIONS ISSUED RELA TED TO THE
FUND DURING THE PREVI OUS FISCAL YEAR ; AND
(IX) ANY RECOMMENDED CHAN GES TO THIS SECTION TO
INCREASE THE EFFICIE NCY AND EFFICACY OF THE FUND.
(L) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AFTER A
15–DAY REVIEW AND COMME NT PERIOD BY THE LEGISLATIVE POLICY COMMITTEE, Ch. 549 2023 LAWS OF MARYLAND
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THE GOVERNOR MAY TRANSFER FUNDS BY BUDGET AMEN DMENT FROM THE FUND
TO THE EXPENDITURE A CCOUNTS OF THE APPRO PRIATE UNIT OF STATE
GOVERNMENT.
(2) IF THE FEDERAL GOVERN MENT IS IN A FULL OR PARTIAL
SHUTDOWN DUE TO A LA PSE IN APPROPRIATION S, AFTER A 2–DAY REVIEW AND
COMMENT PERIOD BY TH E LEGISLATIVE POLICY COMMITTEE, THE GOVERNOR MAY
TRANSFER FUNDS BY BU DGET AMENDMENT FROM THE FUND TO THE FEDERAL
GOVERNMENT SHUTDOWN EMPLOYEE ASSISTANCE LOAN FUND ESTABLISHED
UNDER § 7–327 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
Article – State Finance and Procurement
6–226.
(a) (2) (i) Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the State
Treasurer under this section to special funds or accounts, and otherwise entitled to receive
interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of
the State.
(ii) The provisions of subparagraph (i) of this paragraph do not apply
to the following funds:
170. the Cannabis Public Health Fund; [and]
171. the Community Reinvestment and Repair Fund; AND
172. THE STATE DISASTER RECOVERY FUND.
[7–324.
(a) In this section, “Account” means the Catastrophic Event Account.
(b) Subject to the provisions of this section, the Account is established to enable
the State OR A LOCAL GOVERNMEN T to respond without undue delay to a natural disaster
or other catastrophic situation, or federal civilian employee financial hardship from a full
or partial federal government shutdown due to a lapse in federal appropriations that cannot
be taken care of within the resources of existing appropriations.
(c) The Governor may provide an appropriation in the budget bill to the Account.
(d) (1) Subject to paragraph (2) of this subsection, after a 15–day review and
comment period by the Legislative Policy Committee, the Governor may transfer funds by WES MOORE, Governor Ch. 549
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budget amendment from the Account to the expenditure accounts of the appropriate unit
of State government OR UNIT OF LOCAL GOV ERNMENT.
(2) If the federal government is in a full or partial shutdown due to a lapse
in appropriations, after a 2–day review and comment period by the Legislative Policy
Committee, the Governor may transfer funds by budget amendment from the Account to
the Federal Government Shutdown Employee Assistance Loan Fund established under §
7–327 of this subtitle.
(e) Funds appropriated to the Catastrophic Event Account:
(1) may not be used to offset operating deficiencies in regular programs of
State government; but
(2) may be expended to assist a unit of State government OR UNIT OF
LOCAL GOVERNMENT in funding costs in connection with a natural disaster, a
catastrophic situation, or a full or partial federal government shutdown due to a lapse in
appropriations.
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to §
7–302 of this subtitle.
(2) The Treasurer shall separately hold, and the Comptroller shall account
for, the Account.
(3) The Account shall be invested and reinvested in the same manner as
other State funds.
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle.
(g) Money appropriated to the Account does not revert to the Revenue
Stabilization Account.]
SECTION 2. AND BE IT FURTHER ENACTED, That the bala nce of the
Catastrophic Event Account shall be transferred by the Governor to the State Disaster
Recovery Fund established under § 14–110.5 of the Public Safety Article, as enacted by
Section 1 of this Act.
SECTION 2. 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2023.
Approved by the Governor, May 8, 2023.